There are currently no plans to raise the income ceiling for first-time buyers of HDB BTO flats.

This was revealed by the Minister for National Development Desmond Lee through a written parliamentary reply on Sep. 9, 2024.

He was responding to a question posed by Ang Mo Kio GRC Member of Parliament (MP) Gan Thiam Poh.

Gan had wanted to know if the government would consider providing an additional category of HDB BTO flats for first-time applicants whose joint incomes fall between S$14,000 and S$16,000.

Gan previously brought this issue up in parliament as well in 2020.

https://mothership.sg/2020/08/gan-thiam-poh-bto-singapore-dream

Rationale behind income ceiling

Lee explained the government's decision to keep the income ceiling of S$14,000 as it is.

"The income ceiling ensures that the limited supply of new flats and significant subsidies that come with such flats are prioritised for those who need them more, such as lower- to middle-higher income families."

He added that the current income ceiling covers about eight in 10 Singaporean households.

Other options for buyers

While Gan pointed out that some of those whose income fell between S$14,000 to S$16,000 might still find executive condominiums pricey, Lee said they had other options.

"They can also choose from a wide range of resale HDB flats, for which there is no income ceiling."

Lee went on to share that if they bought a resale HDB flat to live with or near their parents or child, they would be eligible for the Proximity Housing Grant of up to S$30,000.

There were thus no plans to create a new category of BTO flats for these people, Lee said.

Related story

https://mothership.sg/2023/08/plus-flats-income-ceiling

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